When the Marginal Product of Labour Is Less Than the Average

question 78

Multiple Choice

When the marginal product of labour is less than the average product of labour,

• A)the average product of labour is increasing.
• B)the marginal product of labour is increasing.
• C)the total product curve is negatively sloped.
• D)the firm is experiencing diminishing marginal returns.
• E)None of the above.

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Definitions:

Workforce Planning

A strategic approach to forecasting the current and future workforce needs of an organization to achieve its goals.

Human Capital

The total capabilities, knowledge, and non-material assets belonging to individuals that have the capability to produce monetary value for the people themselves, their employers, or their surrounding community.

External Demand

The desire or need for products or services that comes from outside an organization, influencing production levels, marketing strategies, and business growth.

Internal Human Capital

The knowledge, skills, and abilities that employees possess, which are utilized and valued within their current organization.